asia

CN Asia slumps 24% as MoU signed for digital banking venture fails to fan interest


KUALA LUMPUR (Jan 8): Investors appear to have reservations about CN Asia Corp Bhd’s plan to venture into digital banking for female consumers. 

The company’s share price had slumped 57 sen or 24% to RM1.80 as at 11am, with 15.25 million shares changing hands. 

The share price of loss-making CN Asia, which currently is in the business of manufacturing skid tanks, started the year with a bang. Its share price nearly quadrupled in a month to a record high of RM2.35 on Jan 4 — from merely 59 sen on Dec 1, 2020.

To recap, the company yesterday announced that it had signed a memorandum of understanding (MoU) with Intcys Sdn Bhd, under which it plans to invest RM400 million in the establishment of a consortium to provide digital banking for women.

Via the proposed MyWeW (Women Empowering Women) Digital Bank, the company plans to offer services such as entrepreneurial financing, microloans, applications of debit and credit cards, and opening of digital bank accounts.

However, it did not give any timeline for the digital banking venture. The MoU signed is effective for 12 months.

Read also:
CN Asia eyes digital banking licence to offer services to women





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